AI heavyweight Nvidia (NVDA) will report its first quarter results on May 20, in what is easily one of the most anticipated announcements of the earnings season.
Nvidia is contending with increasing competition in the AI processor space including from Cerebras (CBRS), which held its initial public offering last Thursday.
Cerebras sells a different form of AI processor than Nvidia, which the company says offers faster overall performance thanks to its unique design.
Rival AMD (AMD) is also preparing to launch its rack-scale server system later this year, while Amazon (AMZN) and Google (GOOG, GOOGL) are continuing to expand their own businesses.
In its latest earnings report, Amazon announced that its chip segment now has an annual revenue run rate of more than $20 billion and is growing at triple-digit percentages year over year.
The company also said it signed a deal with OpenAI (OPAI.PVT) via AWS to provide 2 gigawatts of capacity for its Trainium chips and that Anthropic (ANTH.PVT) agreed to use up to 5 gigawatts of current and future Trainium chips.
And Tuesday, Google touted its new TPU 8i and TPU 8t chip as part of its annual Google I/O conference in Mountain View, Calif. The TPU 8i is intended for running AI software, while the TPU 8t is designed for training models.
Like Amazon, Google has also signed a multigeneration, multigigawatt deal to provide its TPU chips to Anthropic, The Information reported.
Nvidia’s results come after CEO Jensen Huang traveled to China with President Trump for a summit with Chinese President Xi Jinping. Investors were hoping Xi would agree to import the company’s chips into the country, but Trump told reporters Friday that China is instead focusing on developing its own AI processors.
During an interview on an episode of the Special Competitive Studies Project’s Memos to the President on April 30, Huang said Nvidia no longer has market share in China.
“Nvidia had, you know, call it 90-some-odd percent of the world’s market share,” Huang said in the interview. “Today, in China, we have now dropped to zero.”
Nvidia stock has been on a roll this year, climbing more than 21% year to date as of May 13. It’s up 74% over the past 12 months.
For Q1, Nvidia is expected to report earnings per share (EPS) of $1.76 on revenue of $78.75 billion, according to Bloomberg analyst consensus estimates. That’s up from the $0.96 and $44.06 billion the company saw in Q1 last year.
Nvidia’s data center business is projected to make up the bulk of its revenue, bringing in an estimated $72.85 billion. The company saw data center sales of $39.11 billion in the same period last year.
Of that $72.85 billion, $60.53 billion is expected to come from computing, while the remaining $12.45 billion will come from Nvidia’s networking segment.
The company’s gaming business will generate $3.64 billion, down 3.26%.
Nvidia has also announced several new products in Q1 as part of its GTC event in March, including its Groq 3 language processing unit (LPU) and CPU-only server. Huang also said at the time that he sees $1 trillion in sales of its Grace Blackwell and Vera Rubin chips.
